The purpose of the Resolution is to combat transnational social security fraud and undeclared work. It suggests measures and procedures to the Member States for cooperation and the reciprocal provision of administrative assistance.

ACT

Resolution of the Council and representatives of the governments of the Member States meeting within the Council of 22 April 1999 on a code of conduct for improved cooperation between authorities of the Member States concerning the combating of transnational social security benefit and contribution fraud and undeclared work, and concerning the transnational hiring-out of workers [PDF][Official Journal C 125 of 6.5.1999].

SUMMARY

Member States are invited to take the necessary steps and adopt the required procedures with a view to improving cooperation in the relevant areas, using the following practical means of cooperation and reciprocal provision of administrative assistance:

direct communication between competent bodies;

designation of national liaison offices in the Member States with a view to facilitating cooperation, and their notification to the other Member States and to the Commission;

forwarding of any request for cooperation to the competent body of a Member State;

reciprocal provision of administrative assistance between the competent bodies (supply of information, transmission of documents).

Member States are to encourage cooperation between their competent bodies in respect of data transmission and requests for information, while protecting the right to privacy in the processing of personal data.

Member States are invited to keep the Commission informed of measures taken in implementing this resolution.

Background

In cases where at least two Member States are involved, the code of conduct aims to improve cooperation between the competent authorities and institutions of the Member States in combating social security fraud * and undeclared work *, as well as in the area of the transnational hiring-out of workers *.

Key terms used in the act

Social security fraud: any act or omission to act, in order to obtain or receive social security benefit or to avoid obligations to pay social security contributions, contrary to the law of a Member State.

Undeclared work: any paid activities that are lawful as regards their nature, but not declared in conformity with national law and practice.

Transnational hiring-out of workers: the hiring-out of workers by an employer for the purpose of providing services to a user in another Member State, whose national legislation so permits, with continuation of the employment relationship between the workers and the employer.